U.S. delays blacklisting DeepSeek and more than 100 Chinese firms

More than 100 Chinese companies approved for inclusion on the United States' most powerful trade restriction list have not yet been formally added, as Washington has decided, for now, not to proceed, according to a report by Reuters.

Among those awaiting formal blacklisting are DeepSeek, the Chinese artificial intelligence start-up that shook Silicon Valley last year, and ChangXin Memory Technologies (CXMT), China's leading domestic memory chipmaker. Both were approved for listing by an interagency committee, but neither has been added.

Pause in Entity List additions

The Trump administration has held off adding DeepSeek, CXMT and more than 100 other companies identified as national security risks to the Commerce Department's Entity List as it seeks to avoid escalating tensions with Beijing.

The Entity List is Washington's primary tool for restricting foreign companies' access to American technology. Once placed on the list, firms cannot receive U.S. goods, software or technology without a licence that is highly unlikely to be granted. Inclusion can severely restrict a company's ability to operate in the global technology market.

The U.S. has not announced any additions to the Entity List since October, marking the longest gap between new listings in more than a decade.

According to Reuters, the pause is deliberate. Since late 2025, the Under Secretary of Commerce for Industry and Security has sought to avoid listing Chinese entities out of concern that doing so could heighten tensions between the U.S. and China. The timing follows last month's Trump–Xi summit in Beijing and reflects efforts by the administration to maintain stability in the diplomatic relationship.

Concerns over DeepSeek and chipmakers

DeepSeek, whose low-cost AI model sent shockwaves through the technology sector in January 2025, has been accused by a senior U.S. State Department official of supporting China's military and intelligence operations and of attempting to use shell companies in Southeast Asia to gain illegal access to advanced U.S. chips.

Earlier this year, Anthropic said it had identified a campaign by DeepSeek and two other Chinese AI laboratories to illicitly extract capabilities from its AI platform in order to improve their own models. OpenAI has also warned lawmakers that DeepSeek was targeting its systems.

ChangXin Memory Technologies, meanwhile, was designated a Chinese military company by the Defence Department during the Biden administration. The Commerce Department had reportedly considered placing the company on the Entity List more than a year ago.

Dozens more companies remain in limbo

The list of companies awaiting designation extends far beyond those two firms.

Multiple Chinese companies were reportedly selected for inclusion after supplying Russian drones recovered in Poland last September. Dozens of other Chinese firms were identified last year as national security risks for selling restricted Nvidia chips to Chinese universities.

Companies involved in manufacturing and selling drones and robotic dogs for China's military were also selected as potential targets. None have yet been formally added to the list.

The Commerce Department has not directly addressed the delay. The Bureau of Industry and Security said it uses a range of policy and enforcement tools, including the Entity List, on a daily basis to combat bad actors. However, the statement did not explain why the list itself has remained unchanged for eight months.

• China warns UK over sanctions on firms accused of aiding Russia
• China sanctions Philippine defence chief amid rising tensions
• China’s retail sales post first drop in over 3 years as economy weakens further

Criticism of broader regulatory delays

The delay comes amid what critics describe as broader regulatory paralysis within the bureau.

Early last year, the agency said it would replace a regulation introduced under former President Joe Biden governing global access to U.S.-origin AI chips. However, it has yet to publish a replacement and is not enforcing the earlier rule, creating what critics argue is a loophole that may have allowed such chips to be exported to Chinese companies outside China.

The approved designations have not been cancelled; they remain pending. A shift in U.S.-China relations could trigger swift action at any time, and companies with significant exposure to China's semiconductor and AI sectors are being advised to assess potential supply chain risks.

For now, Washington has the list ready - it is simply choosing not to publish it.

Tags

News China U.S. Politics Business